Why is it crucial to learn about VA loan rates, San Diego? That is because it helps determine whether or not you can get the best deal on your mortgage application. Even a quarter percentage point difference can greatly impact how much money you save out of it.
Given the role that interest rates play in a mortgage, it makes sense to learn about the factors affecting their movements. This will help you get the best deal.
Credit scores are numbers between 300 and 850 that determine how good or bad you are as a consumer. In other words, they measure your creditworthiness. The higher the credit score, the more attractive you are to lenders. This also means that your chances of getting a loan with a low-interest rate are high.
Your credit score is determined according to your credit history, taking into account several criteria such as the number of open accounts, total levels of debt, and repayment history.
Loan Type (purchase, IRRRL, cash-out, jumbo, etc.)
Note that each loan type has different credit risk, time, tax consideration, as well as convertibility. A risk pertains to the probability of a loan getting paid. That means, the greater the chance that the loan will not be repaid, the higher the interest rate you could have.
Loan duration (15- or 30-year)
Generally, the shorter the duration of the VA loan, the lower the interest rate; the opposite is also true. If you want to increase your chances of getting the best VA loan rates, San Diego, you might want to consider a shorter loan duration. It is worth noting, however, that a shorter loan duration would also mean paying higher monthly dues.
Current market conditions
Current market conditions mean the state of supply and demand for mortgage loans at the time of your application. If the market has more people applying for a mortgage loan, you can expect higher interest rates. In other words, market timing is crucial to your loan application. So, you have to keep an eye on the market. Know when to dive in.
Want to know more about VA loan rates, San Diego? Talk to a mortgage expert from HomePlus.
Contact us today at 949-699-2999.